The company will operate under the name "Amlak Finance & Real Estate Investments" as per the Commercial Register in Egypt. Due to open in Jan 2007, the company will become the first UAE Islamic home finance house with an international branch.
At existing levels, Egypt is facing a shortfall of 2.5 million housing units in unmatched demand whilst anticipating an increase of one and a half million inhabitants each year, resulting in an added need for approximately 350,000 housing units annually. Registered under the Egyptian Joint stock company law as a home finance company, Amlak will offer Islamic Home Finance products in Egypt in accordance with Sharia'a principles, to meet the housing needs of nationals, as well as offering investment opportunities for expatriates from around the Middle East. Amlak will initially launch products from the Ijara and Istisna'a models, over long term tenures of up to twenty years.
Previously, the home financing market was restricted to a small number of developments with limited tenures of only 5years, making home ownership almost impossible for a large segment of the population. However, with the introduction of legislation simplifying the registration of property, the real estate market is expected to grow dramatically, meeting the needs of the country, and the projected growth of the Egyptian economy.
"Amlak is committed to developing innovative Islamic financing solutions for investors, whether they are in the UAE or further afield," commented Mohammed Al Hashimi, Managing Director and CEO, Amlak Finance.
"As one of the pioneers in Islamic financing in the UAE it is fitting that we are already taking international steps in our second year of operation as a publicly listed company. We hope to build on this throughout 2007 with further expansion in other locations around the Middle East, to ensure Islamic financing options are available to potential investors around the region, whilst continuing to deliver strong returns to our investors in the UAE."
Amlak revealed that future tie-ups with leading Egyptian developers are planned to maximise the range of properties available for potential investors.
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Amlak become first UAE Islamic home finance company to expand overseas
- United Arab Emirates: Sunday, January 07 - 2007 at 16:53
- PRESS RELEASE
Amlak, the largest publicly listed Islamic finance company and pioneer in home finance in the UAE, today announced its further international expansion schedule, with the upcoming launch of the Egyptian office in Cairo.
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About Amlak:Amlak Finance PJSC (Amlak) was established in November 2000 as a wholly - owned subsidiary of its still major shareholder Emaar Properties PJSC (Emaar). The Company ceased to be wholly- owned in 2003 following a tripling of the capital base. An IPO was held in January 2004 and the Company was listed on the Dubai Financial Market in March 2004. Emaar currently owns 45% of the Company. No other shareholder has a stake of 5% or above. As at end 2004 non-national shareholders held an aggregate 22.8%.
APPENDIX
Istisna'a:
Istisna'a is a contract whereby a party undertakes to manufacture and/ or construct specific items according to the specifications agreed upon by both the buy and manufacturer/seller at a determined price and for a fixed date of delivery. As per the 'Amlak-Bayti" scheme, the price of the property will comprise for the cost of construction and an option of variable "through Musataha - the right to be on land - and construction" or fixed profit, and the buyer will have the advantage of paying it up over a period of up to 25 years for a variable profit and over a period of 15 years for a fixed profit rate.
Ijarah Muntahia Bittamleek:
It is more reliable and convenient than your conventional finance schemes. In this case, the property is acquired by Amlak and subsequently leased out to you for an agreed rent and specified period. This specified rent comprises of 'fixed rental', which is the capital or principle divided by the lease period, 'variable rental' which is the profit calculated on the reducing / balance of the principal and 'supplementary rental such as maintenance, fee, insurance, ownership tax etc. we transfer title in the property to you either at the end of the lease period or at any time if you wish to pre-pay provided that you shall have paid the principal amount and the profit in full.
For more information please contact:
Aimee Peters
Buchanan Middle East
T +971 4 369 8563
Posted by Lara Lynn Golden, News EditorSunday, January 07 - 2007 at 16:53 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Mon Apr 30 2007.
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